Clear as mud

  • There is a segment of the market that thinks too much attention is paid to every single utterance of the world’s central bankers. Cue, today: The financial world is tying itself in knots trying to decipher the somewhat hawkish comments of recently dovish hawkish Fed Chair Jerome Powell, who gave a brief but positive assessment of the economy at an event on Wednesday.

 

  • Look, it’s perfectly clear: Depending on various stuff, they could hike, cut or maybe hold. Still confused? Don’t feel bad. Even former Fed head honcho Janet Yellen has no idea what’s next. And since we’re talking policymakers, the Bank of England meets today and is expected to neither cut nor raise while telling us they stand ready to cut or raise.

 

  • At least one central bank is in the mood to shake things up: Indian policymakers delivered a surprise cut today.

 

(Source: Bloomberg)